Contents
Chapter 1: The Evolution of ETFs
Objective of the Original ETFs
Development of New and Different ETFs
The Launch of “Intelligent” ETFs
New ETFs Use Unique Strategies
Investment Opportunity with the New ETFs
Opportunities to Trade Market Moves in Bear and Bull Markets
Using ETFs to Maximize Returns in Sideways-to-Down Markets
The Importance of Picking the Right Sectors
Risk Cycles and Market Returns
Chapter 3: Long-Term and Short-Term Market Timing and Investing
The Risk and Reward of Market Timing
Long-Term Investing Using Indexes
The Reason to Buy Indexes for Long-Term Investing
Chapter 4: Understanding Index-Weighting Choices
Is Cap Weighting the Best Way to Weight ETFs?
Which Is Better: Cap Weighting or Alternatively Weighting?
Chapter 5: Fundamental Indexing
Comparing Equal-Weighted Indexes and Cap-Weighted Indexes
Portfolio Underperformance Problems
Fundamental and Capitalization Weighting in U.S. Stock Sector Weighting
Global Stock: Rolling 12-Month Average Country Weights
Cap-Weighted Indexes Fill a Need
Weighting Other Than Cap Weighting Is Making a Bet
Slicing and Dicing Cap-Weighted Indexes
Making Bets Using Asset Class Factors
Cap Weighting Is the Purest Form of Investing
Asset Allocation—Modern Portfolio Theory (MPT)
Individuals and Institutions Buy Currencies
An Equal-Weighted Way of Owning the Market
The Value of Equal-Weight Indexes and ETFs
Chapter 8: How Do Outstanding Money Managers Use ETFs?
The Best Methods for Using ETFs
Money Managers: How They Use ETFs in Their Investing Strategies
Metropolitan Capital Strategies, LLC
Cedarwinds Investment Management
Longview Capital Management, LLC
Efficient Market Advisors, LLC
JForlines Global Investment Management
The Chudom Hayes Wealth Management Group at Morgan Stanley Smith Barney
First Affirmative Financial Network
Wisehaupt Bray Asset Management at HighTower Advisors